Packaging Corp of America (NYSE:PKG)

A producer of containerboard and corrugated products, including conventional shipping containers used to protect and transport manufactured goods, multi-color boxes and displays with strong visual appeal that help to merchandise the packaged product.

I'm channeling Peter Lynch on this one: 1) the company has a super boring product and an even more boring name. 2) it's a business I can understand. 3) boring fundamental part of an exciting industry (online retailers).

Anyone who works for this company can see the handwriting on the wall. It's been overrated and continues to be. What traders are obviously not seeing is the truth -- the seriously aging senior management, the complete lack of a succession plan ("we just can't find any young managenent"). The arrogance, hypocracy, cronyism and outright incompetence practiced by the Manufacturing Services group headed by the good old boys in Florida and all their old corrugating buddies. They've got all of you snowed and they're making personal fortunes, laughing all the way to the bank.

Packaging Corp. of America (PKG) recently raised its dividend which upped its payment by 20% to $1.20 a share. The company just reported record third-quarter earnings of $49 million, or 46 cents a share, vs. last year's earnings of 42 cents a share. Overall net sales increased 2.8%, but its exported sales were up 16% for the quarter. This Fool's take? Earning AND a dividend--what more could an investor want?

One of my favorite stocks...just a cash machine...a well-diversified manufacturing base, intelligent management, and strong cash flows. Watch out for a dividend increase here! This could be a vehicle for industry consolidation as well...only time will tell. Also..dont forget they own a joint venture with higher-better timberlands in Florida and Georgia.